The Hindu Business Line : Biocon Q3 net rises 45% at Rs 47.51 crore

Biocon Ltd has posted a 44. per cent increase in its net profit at Rs 47.51 crore for third quarter ended December 31, 2006, compared with Rs 32.79 crore posted during the same period of the previous fiscal.

Net sales rose 24 per cent to Rs 214.08 crore (Rs 172.4 crore). Profit before tax was Rs 51.13 crore (Rs 41.08 crore). EPS grew year-on-year to 4.93 (3.43).

The company attributed the growth to good performance on research services and biopharmaceuticals, supported by statin exports to the US, besides technology and licensing revenues.

"FY 07 will reflect good strategic and financial progress," the Chairman & Managing Director, Ms Kiran Mazumdar-Shaw, said.

Share Price

The Biocon scrip, after several months, rallied over 10 per cent on both the bourses, closing at Rs 410.25 on the BSE and at Rs 410.45 on the NSE. It gained Rs 75 touching an intra-day high of Rs 445.65 on the BSE.

For the nine months ended December 31, 2006, on a consolidated basis — including wholly owned subsidiaries Syngene International, Clinigene International and the 51 per cent Cuban joint venture, Biocon Biopharmaceuticals — the company reported revenues of Rs 710 crore, up 23 per cent; profit after tax of Rs 140 crore, up 11 per cent; and EBITDA of Rs 200 crore, up 16 per cent.

Consolidated Q3 figures showed growth of 26 per cent in profit after tax year-on-year; 22 per cent sequentially, with a significant improvement in the overall business.

"Biocon is now focussed on building marketing and distribution capabilities that will provide direct channels of access to international markets. The (recent) proposed joint venture with the NMC Group in Abu Dhabi is the first step in this direction," Ms Mazumdar-Shaw said

ORAL INSULIN

The revolutionary oral insulin programme has passed phase I human clinical trials and is likely to enter phase II human clinical trials later this year.

Ms Mazumdar-Shaw said: "We are pleased that our investments in R&D and Biocon Park are beginning to deliver healthy and sustainable profits. We are confident that Biocon's research efforts will enable us to participate in large global opportunities in oncology, rheumatoid arthritis and diabetes. Our recently launched BIOMAb-EGFR (for head and neck cancer) will undergo trials for label expansion (for lung cancer and glioma) whilst T1h (anti-CD6 antibody) and IN105 (oral insulin) are expected to enter phase II clinical trials in 2007." The cancer drug is entering the Pakistani market through a licensing arrangement with Ferozsons Labs

In December 2006, USFDA inspected the SEZ facilities at Biocon Park. The inspection report is expected in early 2007. An approval will enable Biocon to take its statins and immunosuppressants to the lucrative North American markets.

LONDON OFFICE

Biocon expects to open a London office by April 2007. The aim is to tap the European opportunities in biosimilars for insulin and other drugs; these are coming up with the EU drafting a framework for biosimilars. The London office will foster research partnerships with companies and research institutions in the region, Biocon said.

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